Thursday and Friday were supposed to be easy with the Chinese market closed. What happened? Despite the Chinese holiday the S&P 500 futures took it on the chin in overnight trading. Maybe the holiday means more time to sell US Stocks? Stop kidding yourself. Retail Chinese investors that have been active in the Shanghai Composite and its deleveraging have no idea what S&P 500 Futures are or how to set up an account to trade them.
Growth jitters? That makes sense right, with the GDP print over 3%, and now jobs expected to continue to grow at about 200,000 in August. Maybe it is the Fed tightening debate. This is one point I agree with former Fed Chairman Greenspan on.
So what is the excuse for all the selling? Maybe you are asking the wrong question. Maybe the better question is why do you need a reason to back up the price action? Remember when you were a kid and some other kid challenged your demand to do something? Or maybe you have kids and tell them what to do without giving a reason. When they ask why in either case the answer is frequently one word. Because.
Stop trying to assign a story to the price action. Watch it. Develop a plan. And then react to it.
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